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    The customer is stating the paper is not commercial. The vendor believes they have better paper for less cost, however customer needs this MIL-STD target paper. The customer says that MIL-STD Target Paper is of better quality than regular target paper. I'm thinking this MIL-STD Target Paper is likely a minor modification of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. I dot not think "better quality" Target paper significantly alters the nongovernmental function or essential physical characteristics of the paper, or changes the purpose. However, is it possible for MIL-STD to be commercial? Thanks


    Answer

    Can a required supply be both MIL-STD and Commercial?

    No - It's either MIL-STD or commercial it cannot be both.  Based on the background information you provided, it appears you are trying to go from Non-Commercial to Commercial - which you can't do; however, you can go from Commercial to Non-commercial. Please see FAR 2.101, FAR 15.403-1(c)(3) iii
      FAR 2.101:  Commercial item” means --
    (1) Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and--
    (i) Has been sold, leased, or licensed to the general public; or,
    (ii) Has been offered for sale, lease, or license to the general public;
    (2) Any item that evolved from an item described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;
    (3) Any item that would satisfy a criterion expressed in paragraphs (1) or (2) of this definition, but for --
    (i) Modifications of a type customarily available in the commercial marketplace; or

    (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. Minor modifications means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;
    FAR 15.403-1(c)(3)
    (iii) The following requirements apply to
    minor modifications defined in paragraph (3)(ii) of the definition of a commercial item at 2.101 that do not change the item from a commercial item to a noncommercial item:
    (A) For acquisitions funded by any agency other than DoD, NASA, or Coast Guard, such modifications of a commercial item are exempt from the requirement for submission of certified cost or pricing data.
    (B) For acquisitions
    funded by DoD, NASA, or Coast Guard, such modifications of a commercial item are exempt from the requirement for submission of certified cost or pricing data provided the total price of all such modifications under a particular contract action does not exceed the greater of the threshold for obtaining certified cost and pricing data ($750K) or 5 percent of the total price of the contract at the time of contract award.
    (C) For acquisitions funded by DoD, NASA, or Coast Guard such modifications of a commercial item are not exempt from the requirement for submission of certified cost or pricing data on the basis of the exemption provided for at FAR 15.403-1(c)(3) if the total price of all such modifications under a particular contract action exceeds the greater of the threshold for obtaining certified cost or pricing data in 15.403-4 or 5 percent of the total price of the contract at the time of contract award.


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